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Trade Openness and Culture

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Author Info

  • Christopher Coyne

    (Department of Economics, West Virginia University)

  • Claudia Williamson

    (Department of Economics, New York University)

Abstract

This paper empirically analyzes the effect of trade openness on culture, measured by indicators of trust, respect for others, perceived level of self-determination, and level of obedience. These cultural categories play a central role in encouraging or limiting economic and social interactions and therefore impact economic outcomes. We find that trade openness has a positive and highly significant impact on culture. The more open a country is to trade, the more likely it is to possess culture conducive to increased social and economic interactions. This result is robust to the inclusion of a variety of control variables, different model specifications, and alternative trade measures.

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File URL: http://www.be.wvu.edu/phd_economics/pdf/09-05.pdf
File Function: First version, 2009
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Bibliographic Info

Paper provided by Department of Economics, West Virginia University in its series Working Papers with number 09-05.

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Length: 54 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:wvu:wpaper:09-05

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Web page: http://www.be.wvu.edu/phd_economics/
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Related research

Keywords: culture; informal institutions; trade openness;

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References

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  1. Claudia Williamson, 2009. "Informal institutions rule: institutional arrangements and economic performance," Public Choice, Springer, Springer, vol. 139(3), pages 371-387, June.
  2. Guido Tabellini, 2008. "Presidential Address Institutions and Culture," Journal of the European Economic Association, MIT Press, MIT Press, vol. 6(2-3), pages 255-294, 04-05.
  3. William Easterly & Ross Levine, 2002. "Tropics, Germs, and Crops: How Endowments Influence Economic Development," Working Papers, Center for Global Development 15, Center for Global Development.
  4. Kenneth S. Chan, 2007. "Trade, Social Values, and the Generalized Trust," Southern Economic Journal, Southern Economic Association, Southern Economic Association, vol. 73(3), pages 733–753, January.
  5. Francisco Rodriguez & Dani Rodrik, 1999. "Trade Policy and Economic Growth: a Skeptic's Guide to the Cross-National Evidence," Working Papers, Economic Research Forum 9912, Economic Research Forum, revised Apr 1999.
  6. Yanikkaya, Halit, 2003. "Trade openness and economic growth: a cross-country empirical investigation," Journal of Development Economics, Elsevier, Elsevier, vol. 72(1), pages 57-89, October.
  7. Jeffrey Sachs & Andrew Warner, 1995. "Economic Reform and the Progress of Global Integration," Harvard Institute of Economic Research Working Papers, Harvard - Institute of Economic Research 1733, Harvard - Institute of Economic Research.
  8. Amir N. Licht & Chanan Goldschmidt & Shalom H. Schwartz, 2003. "Culture Rules: The Foundations of the Rule of Law and Other Norms of Governance," William Davidson Institute Working Papers Series, William Davidson Institute at the University of Michigan 2003-605, William Davidson Institute at the University of Michigan.
  9. Durham, J Benson, 1999. " Economic Growth and Political Regimes," Journal of Economic Growth, Springer, Springer, vol. 4(1), pages 81-111, March.
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Citations

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Cited by:
  1. Dutta, Nabamita & Mukherjee, Deepraj, 2011. "Is culture a determinant of financial development?," MPRA Paper 35867, University Library of Munich, Germany.
  2. Forson, Joseph Ato & Janrattanagul, Jakkaphong & Carsamer, Emmanuel Carsamer, 2013. "Culture Matters: A Test of Rationality on Economic Growth," MPRA Paper 56825, University Library of Munich, Germany.
  3. Nabamita Dutta & Sanjukta Roy, 2013. "The changing face of culture: gauging the impact of a free media," European Journal of Law and Economics, Springer, Springer, vol. 36(1), pages 95-115, August.

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